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Wireline Competition Bureau- Virtual Workshop - Third Batch Topics

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Released: December 17, 2012


Federal Communications Commission

News Media Information 202 / 418-0513

445 12th St., S.W.


Washington, D.C. 20554

TTY: 1-888-835-5322

DA 12-2029

Released: December 17, 2012



WC Docket Nos. 10-90, 05-337

On Tuesday, October 9, 2012, the Wireline Competition Bureau (Bureau) announced the
commencement of the Connect America Cost Model virtual workshop, the next step in
implementing Phase II of the Connect America Fund established in the USF/ICC Transformation
.1 The virtual workshop solicits input on a variety of topics related to the development and
adoption of the forward-looking cost model for Connect America Phase II. On December 11, 2012,
the Bureau announced the release of the first version of the Connect America Cost Model and
solicited input in the virtual workshop as to whether any other functionalities or capabilities should
be added to the Connect America Cost Model platform.2 Comments on this topic are due no later

January 11, 2013

Today, the Bureau seeks public input on two newly added virtual workshop discussion
Calculating Average Per-Unit Costs/Take Rate

1 Wireline Competition Bureau Announces Commencement of Connect America Phase II Cost Model Virtual
, WC Docket Nos. 10-90, 05-337, Public Notice, 27 FCC Rcd 11977 (Wireline Comp. Bur. 2012).
See also Wireline Competition Bureau Announces Connect America Phase II Cost Model Virtual Workshop,
WC Docket Nos. 10-90, 05-337, Public Notice, 27 FCC Rcd 11056 (Wireline Comp. Bur. 2012). The
USF/ICC Transformation Order adopted a framework for providing ongoing support to areas served by price
cap carriers, including areas where broadband service is not currently provided, known as Connect America
Phase II. Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of
Proposed Rulemaking, 26 FCC Rcd 17663 (2011) (USF/ICC Transformation Order or Order), pets. for review
pending sub nom. In re: FCC,
No. 11-9900 (10th Cir. filed Dec. 18, 2011). The Commission will provide
ongoing support to these areas through “a combination of a forward-looking cost model and competitive
bidding.” USF/ICC Transformation Order, 26 FCC Rcd at 17673, para. 23. In June 2012, the Wireline
Competition Bureau sought comment on a number of cost model threshold issues. Wireline Competition
Bureau Seeks Comment on Model Design and Data Inputs for Phase II of the Connect America Fund
, WC
Docket Nos. 10-90, 05-337, Public Notice, 27 FCC Rcd 6147 (Wireline Comp. Bur. 2012). In September
2012, the Wireline Competition Bureau held a two-day in-person workshop discussing the design and
mechanics of the models submitted into the record by the ABC Coalition and Alaska Communications
Systems. Wireline Competition Bureau Announces Agenda for Connect America Phase II Cost Model
, WC Docket Nos. 10-90, 05-337, Public Notice, 27 FCC Rcd 10968 (Wireline Comp. Bur. 2012).
A recorded webcast of the first day of the workshop is available on the Commission’s website at and the Commission’s YouTube
page at Workshop materials are available at
2 Wireline Competition Bureau Announces Availability of Version One of the Connect America Fund Phase II
Cost Model
, WC Docket Nos. 10-90, 05-337, Public Notice, DA 12-2011 (Wireline Comp. Bur. rel. Dec. 11,

Assigning Shared Costs
In addition, the Bureau asks the public to provide input on topics on which it previously sought
comment in light of the release of version one of the Connect America Cost Model:
Determining Customer Locations
Capturing Variation by Geography
Inter-Office Transport Cost
Voice Capability
Wire Center Facilities
Sizing of Network Facilities
The Use of Company-Specific Values
Calculating Opex
Determining the Annualized Cost of Capital Investments
Determining the Sharing Factor for Outside Plant
Plant Mix
Labor-Cost Adjustment Based on Location
In particular, commenters are invited to address the questions previously posed, focusing specifically
on the choices made in version one of the Connect America Cost Model. Comments in response to
these 16 previous and newly added topics should be submitted no later than

January 16, 2013.

The Bureau may continue to add discussion topics, which will be announced by Public
Notice. Parties can participate in the virtual workshop by visiting the Connect America Fund
webpage,, and following the link to the virtual
The virtual workshop will take place over a period of weeks sufficient to allow public input
on all material issues. Discussion of additional topics may start and end at specific times that will be
announced in advance. Comments from the virtual workshop will be included in the official public
record of this proceeding. The Bureau will not rely on anonymous comments posted during the
workshop in reaching decisions regarding the model. Participants should be aware that identifying
information from parties that post material in the virtual workshop will be publicly available for
inspection upon request, even though such information may not be posted in the workshop forums.
Reasonable accommodations, including materials in accessible formats (Braille, large print,
electronic files, and audio format) for people with disabilities are available upon request. Please
include a description of the accommodation you will need, and tell us how to contact you if we need
more information. Please make your request as early as possible. Last minute requests will be
accepted but may be impossible to fill. Accommodation requests should be directed to Kelly Jones,
at, 202-418-7078 (voice), 202-418-1169 (TTY), or 845-474-0054 (video).
For further information, please contact Katie King, 202-418-7491, or
Ted Burmeister, 202-418-7389,

- FCC -

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